Among companies related to the artificial intelligence boom, information technology specialist Hewlett Packard Enterprise (NYSE:HPE) isn't exactly the first name that comes to mind. That's mainly because the company isn't a frontline semiconductor enterprise but is rather a provider of critical infrastructure. Nevertheless, the steep sell-off in the tech space has been disruptive, with HPE stock down about 10% in the trailing month. Despite the pain, though, there could be a contrarian opportunity in the mix.
Fundamentally, Hewlett Packard might benefit from a broad, recurring catalyst rather than a single hypersensitive product cycle. Sure, companies like Nvidia Corp (NASDAQ:NVDA) tend to grab most of the headlines. At the same time, their price discovery process can be peaky. However, Hewlett Packard is in the business of AI infrastructure — servers, networking, storage, data pipelines and similar systems. These elements represent multi-phase, multi-year build-outs across both enterprises and government agencies.
